FORT LAUDERDALE, Fla., Nov. 28, 2017 /PRNewswire/ -- Patriot National, Inc. ("Patriot National" or the "Company"), a leading provider of technology and outsourcing solutions to the insurance industry, announced today that it has agreed to be acquired by certain funds and accounts managed by each of Cerberus Business Finance, LLC and its affiliates ("Cerberus") and TCW Asset Management Company LLC ("TCW"). The transaction will be effectuated under a plan of reorganization (the "Plan") pursuant to the terms of a restructuring support agreement ("RSA") between Patriot National and its lenders, Cerberus and TCW, under which the Company and its direct and indirect U.S.-based subsidiaries (the "Subsidiaries") will file voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.
The Company expects that it will continue to operate its business in the ordinary course and the Chapter 11 filing is not expected to have a meaningful impact on the Company's day-to-day operations. Specifically, the Company intends to continue to provide uninterrupted service to all of its carrier customers in accordance with the terms of the current agreements. Furthermore, it is anticipated that all commissions due to brokers who commit to continue their business relationships with the Company will be paid in the ordinary course of business or in full under the Plan. The Company expects the reorganization, which is subject to the completion of definitive documentation and regulatory approval, to be completed early in the second quarter of 2018.
Under the RSA announced today, certain funds and accounts managed by Cerberus and TCW will convert a portion of their claims under the financing agreement in consideration for 100% of the new equity to be issued in Patriot National and the Subsidiaries under the Plan. All existing equity interests in Patriot National and the Subsidiaries will be extinguished, and Patriot National will no longer have any affiliation with its founder and former CEO Steven Mariano, who resigned earlier this year.
"Today marks a significant milestone for Patriot National as we look to reduce our debt, significantly improve our liquidity and financial condition, and improve our ability to service our loyal customers," said John Rearer, CEO of Patriot National. "In taking the measured, strategic step to recapitalize through a Chapter 11 process, we are partnering with strong financial and operational partners who can provide us with the resources and expertise to move forward. We are recommitting ourselves to our customers and will ensure that they continue to receive the same high level of service they have come to expect under all current agreements."
Further information on today's announcement can be found in Patriot National's 8-K SEC filing.
About Patriot National
Patriot National, Inc. is a national provider of comprehensive technology and outsourcing solutions that help insurance companies and employers mitigate risk, comply with complex regulations and save time and money. Patriot National provides general agency services, technology outsourcing, software solutions, specialty underwriting and policyholder services, claims administration services, and self-funded health plans to its insurance carrier clients, employers and other clients. Patriot National is headquartered in Fort Lauderdale, Florida. For more information about Patriot National, please visit www.patnat.com.
Forward Looking Statements
This press release may include statements that may be deemed to be forward-looking statements, including statements regarding the impact of the reorganization on our business and ongoing operations, our ability to continue to provide services to our customers and pay commissions to our brokers, the timing of completion and regulatory approval with respect to the reorganization, and our future financial condition. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "positioned," "outlook," and similar expressions are used to identify these forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties, and there are important factors that could cause actual results to differ materially from those indicated in these statements, including our ability to successfully consummate the reorganization, the impact of the reorganization on our relationship with customers and brokers, our ability to successfully implement our strategic plans that address recent business developments, as well as those matters contained in our filings with the Securities and Exchange Commission. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance or events and that results may differ materially from statements made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statement that we may make in this press release speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking statement or to publicly announce the results of any revision to any of those statements to reflect future events or developments.
Gex "Jay" Richardson
General Counsel and Vice President of Administration
Patriot National, Inc.
SOURCE Patriot National, Inc.